If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then
A) new firms are attracted to the industry. B) existing firms will exit the industry.
C) market supply will remain constant. D) firms are breaking even.
A
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Antitrust policies are a set of measures which are taken to liberate the economy from unnecessary governmental controls
a. True b. False Indicate whether the statement is true or false
The difference between the value of a country's merchandise exports and merchandise imports is known as the balance
a. of payments. b. of merchandise trade. c. on current account. d. on capital account.
A central bank pledges to reduce the inflation rate from 10% to 3%. People reduce their inflation expectations to 5%, but the central bank reduces inflation to 3%. What happens to the unemployment rate?
In general, we could say that
A. liberal economists favor a larger economic role for government and conservatives favor a smaller role. B. conservative economists favor a larger economic role for government and liberals favor a smaller role. C. both liberals and conservatives favor a larger economic role for government. D. liberals and conservatives favor a smaller economic role for government.